= Homework: Homew...

Homework: Homew... HW Score: 90%, 9 of 10 points Question 10, Problem 6-. O Points: O ofl Save You are considering developing an 18-hole championship golf course that requires an investment of $20,000,000. This investment cost includes the course development, club house, and golf carts. Once constructed, you expect the maintenance cost for the golf course to be $650,000 in the first year, $715,000 in the second year and continue to increase by $65,000 in subsequent years. The net revenue generated from selling food and beverage will be about 17% of greens fees paid by the players. The cart fee per player is $15, and 35,000 rounds of golf are expected per year. You will own and operate the course complex for 9 years and expect to sell it for $26,000,000. What is the greens fee per round that will provide a return on investment of 17%? Assume that the greens fee will be increased at an annual rate of 4% Click the icon to view the interest factors for discrete compounding when i=4% per year. Click the icon to view the interest factors for discrete compounding when 17% per year. The greens fee that will provide a return on investment of 17% is $ 75.11 per round. (Round to the nearest cent.) Etext pages Calculator Get more help Clear all Final check